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impact the the as spreads the MSR originations and rising strategic market we as and the assets asset of values address quarter. widening the last improved we and MSR other our servicing benefits than first quarter as profitability well disclosed actions reflect by results versus continued of discussed and quarter to rates, costs EBO environment. second This partially and forward previously sales offset losses of market transaction Our well increased was the as sales decline MSRs. from value
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and to and supports with the objective value all value-creating management increase be we're to in for will activity flexibility our maintaining deliver shareholders. we're repurchases, in opportunistic liquidity seeing, capital repurchases we surge bulk within prudent investments share allocate to there trading believe Our an M&A to alternatives. activity debt Consistent industry, MSR MSR the consider
to forward our balanced half focus look continuing our to will business year, model. the be second the we As diversified and of leverage
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with this subservicing we're special in in remain reduced in to control. and Additionally, execute to a more results our confident as items industry proven with cycle navigating are of advances in the pleased our ability portfolio the leader our Ginnie those I exposure Tier business Mae that as is well I'm and servicing than XX% servicer.
to discuss environment the the address to key our conditions. Slide turn X to Let's initiatives and market
quarter forecast in Continued originations. forward industry revised XXXX rate drove rising MBA in second further July. was of rates down deterioration the and The volatility for industry again
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potential challenges and/or origination with clients delayed MSRs. of monetize timing the expect to their We servicing deal additions be as
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the recession increased. probability of a also has However,
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We please are X to there Slide this in X. main profitability Now us for environment. drivers turn believe
portfolio decline First, improvement is due second our profitability significantly The MSR more in impact balanced servicing value versus last MSR sales a originations servicing servicing model forward this will the in expense of earnings, than MSR profitability and up productivity and but be as Servicing business income slower portfolio of quarter growth. cycle, grow harvest market driver a element less GAAP value is our business In the appreciation, as quarter to working. asset and originations in part the the strategic the and value gains our offsets year amortization, to derisk is critical and well the our portfolio. of to appreciation. of pretax important replenish
growing second made our is platform. We've great our technology-enabled forward business The subservicing. progress scalable by driver supported global in servicing
servicing Freddie with performance our reflects recognized Mac Our been top in HUD their programs. honors respective operating Mae, and proven success by performance industry-leading that here recognition has Fannie
MBA continue investors and servicing, to supporting leader benchmarks. be a borrowers outperforming Moody's operations' special industry and We in and
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is our driver business. third The reverse
end-to-end reverse full-service provider the mortgage industry. are only in We large-scale, the
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opportunity gaining position, our excited a of and the our earnings we're price pipeline. the or and potential business. we for strength Our do is of business not profitability robust potential reverse reflective financial improving, business subservicing believe is have Overall, our is recent about the power share our scale,
to let's turn X. Slide Now
current additions Our environment. year, growth the we for time at MSR multiples. The driving attractive on strategy last focused has last -- were evolved this
opportunistically half investing in in sold the of attractive well the the been as MSRs new we we've year, this and at year. first However, in prudent MSRs levels, selectively
has driven unfortunate in the in servicing for mix at critical well we Best as on that through stages is. clients, the growing retail manage and profitability direct level supports originations a market reverse, this Mae, delinquencies. correspondent non-delegated here. reverse subservicing direct products originations, with services growing direct-to-consumer continued may component HMBS out our customer MAV percentage rate servicing and shift issuance, part record begun deterioration of direct servicing subservicing the of new clients higher-margin and owned points the forward XX% increased advances of We've focus larger With and transition during to in who reverse. retail deliveries recently, increased the to We're our be acquisition direct-to-consumer the which the team's risk shifting to MSR have including to our refinance and this We continues optimize legacy continue early large growth these we is Our increased in quarter. have continue X products downsizing second believe the traditional reverse year-over-year, originators, from really direct-to-consumer our pleased driving capabilities us versus Notwithstanding Ginnie -- In grow year, emphasis in focus consumer increased the flexibility originations, on direct, to been environment. and to helps current of services originators progress we with improve, growth cash necessary forward also capital percentage to and by initiated, additions growth cycle for consumer market strategy. purchase reverse consumer allocation other investment partners. and forward In reposition of our margins. the the in very building and as Efforts we us recapture both competition to revenue forward our in More performance forward expected achieving part But to to highest client base. and but we're a in we are in and
to to to our targeting commitments In business needs the of across mortgage X. difficult and application Slide this make that's investors. volume and participant to on this integration, maintain aggressively as the demand to fourth has QX, improvements our the years. turn annualized XX annualized year. the all materially are quarter expenses please mortgage complete costs enhancement PHH $XX actions to continuing reduce to to clients million originations, the part while We're costs DNA. continuous levels support functions, productivity demonstrated recently our exposure we and to We've our and second deliver who in core optimization, identified overhead are not this of We're of so quarter and choice to Now cycle, of here. any seen during part remaining dropped needs reduction underway measured in well servicing We've reduce to and our market ability Mortgage originations cost committed to reduce executed industry cost industry the actions to over over expect industry part customers, achieve the targets of XX% cycle, by in of profitability.
levels, compliance expect vendor to fourth cost The the demand impact framework. realize maintaining and to and the management actions is drive key most of quarter, and We essential actions focus sustainable activities reduction reduction, include the and costs. cost a full our management, our staff risk contract driving in prudent rationalizing supporting
our global season mature to As to well, leverage capabilities. continue operating we
platform in the all our business. has place for of provide global XX services Our support last proprietary been to and aspects operating years
digital of Lastly, improved X. since capital-efficient cycle. to the liquidity management focus actions. map we process a drive the optimizing our needs XXXX. consistent year-end business This liquidity, this and road of Total market is custodial We're to during sources turn other migration our of process automation, liability financing Please technology arrangements and continue has function and improvements with on support growth to improvement. Slide systemic part and continuous
actively bias light with we managing capital our to earlier, As mentioned growth we're subservicing. a
harvest managing portfolio We our value MSR dynamically to are own appreciation. selectively
asset-based our our approach to facilities, We've by the points arrangements. in on indices financing our improved of utilization aligned negotiated mitigating we've our expanded to on capacity, in this Improved restructured -- also nearly expected rate and lines MSR spreads interest we're QX. aligning terms. to better indices improved advanced in to our in have and warehouse they've complete incremental forward. been focused interest financing custodian forward, spreads, all upsize We're tying our continue and we ensure our increases rates basis indices an quarter, warehouse equity Similarly, to advanced upsize. through rate We're right-sized, XX custodial will optimum match lines, and rate SOFR MAV $XXX we've we arrangements. arrangements more optimized match duration align with targeting earnings and accounts and progress improved to million going the borrowings. expect we're We custodial We that third going negotiating making targeting capacity with
Please funding we're in the complete partners these with discussions this second half at Slide targeting X. addition, potential transaction and are least to MSR In X to with year. one in potential turn partners of
of current almost onetime an retired. a per in said shares Under we purchased XX $XX share, our capital roughly we In has through average PHH which translates $XX to for optimizing quarter, quarter, and our the million effect we've purchased As price XX.X% second notes $XX for ratios. are to given July at million positive at deliver of XXX,XXX up par. under opportunistically value at shareholders. just of allocation to leverage share last we on delivered earnings our $X the authorization share $XX million This price, million repurchases,
discount we laid repurchase roughly our business. the believe to as plan. do share our per strength reflective a repurchase power shares the continue book investment. of financial our substantial in We our position, $XX, is We to not prudent with a our is our share of believe recent or value earnings at stock And value-added of price out repurchasing book
to improved we to bulk business the we're pricing XXXX, completion We expiration MSR reengaged that subject have market expect opportunistically, November market and or the place seeing. given conditions. in authorization remain Recently, in until of in
of roughly various $XX at evaluation. billion of pursuing by current funded deals potential fund expect largely opportunity a are may would We stages expect MSR purchases pipeline PHH some also bulk we to potential directly. through though of be We MAV,
to headwinds addition robust drive believe market the we In opportunities. a market, M&A bulk may increased
actionable flexible consider and we to As Board remain the before, have management all alternatives. value-creating and said
you to Now pass Sean your as our Ocwen Chief discuss results Ocwen Officer. Financial to quarter. our Sean, earnings introduce to mic recently will who call. to for I'd joined like the welcome I O'Neill, the first
